Ann: GENERAL: PFI: PFI Announces Q1 Dividend; Dis

• Release Date: 05/05/14 10:50
• Summary: GENERAL: PFI: PFI Announces Q1 Dividend; Disposals & Financing Update
• Price Sensitive: No
• Download Document  4.14KB

					PFI
05/05/2014 08:50
GENERAL

REL: 0850 HRS Property for Industry Limited

GENERAL: PFI: PFI Announces Q1 Dividend; Disposals & Financing Update

PFI ANNOUNCES FIRST QUARTER DIVIDEND; PROVIDES DISPOSALS & FINANCING UPDATE

Highlights

- First quarter dividend of 1.75 cents per share;
- Two non-core disposals generating $7.9 million(i);
- $350 million syndicated bank loan facility refinanced on competitive terms.

NZX listed industrial property landlord Property For Industry (PFI) today
announced a first quarter cash dividend of 1.75 cents per share and an update
on some of the company's recent activity.

Dividend

PFI will pay a first quarter cash dividend of 1.75 cents per share. The
dividend will have imputation credits of 0.5071 cents per share attached and
a supplementary dividend of 0.2301 cents per share will be paid to
non-resident shareholders. The record date for the dividend is 19 May 2014
and the payment date is 28 May 2014.

The PFI board has again resolved to suspend the dividend reinvestment scheme,
and will continue to assess whether to operate or suspend the dividend
reinvestment scheme on a quarter-by-quarter basis.

Guidance for the financial year ending 31 December 2014 remains unchanged,
with total cash dividends expected to be approximately 7.25 cents per share.

Disposals

The company has continued to take advantage of a positive investment market
by disposing of a further two non-core properties. 326 Rosebank Road,
Auckland has been sold for $1.1 million(i), the sale settling on 16 April
2014, whilst 5 Cable Street, Wellington has been sold for $6.9 million(i),
the sale due to settle on 10 June 2014. Both sales were in excess of the most
recent valuation, and the proceeds will be reinvested in accretive core
industrial opportunities, with minimal changes expected to the company's loan
to value ratio.

Financing

PFI is pleased to announce that the company's $350 million syndicated bank
loan facility has been refinanced on competitive terms. The refinanced
facility, provided by existing lenders ANZ, BNZ, CBA and Westpac, comprises
two $175 million dollar tranches committed for four and five years
respectively, resulting in an average term to expiry of four and a half
years.

The company has also continued to carry out interest rate hedging(ii)
activity since year end. PFI now(iii) carries carrying current hedging of
$288 million at an average rate of 4.21% for an average duration of two and a
half years(iv). Based on current hedging and debt levels, an average of 77%
of the company's debt will be hedged for the remainder of 2014.

When combined with the refinanced loan facility, PFI's weighted average cost
of debt remains low at 5.76%(v) (5.51% as at 31 December 2013).

General

PFI's board and management team look forward to seeing shareholders at the
2014 annual meeting where a full update of the company's activities will be
presented. The meeting will be held at the Level 4 Lounge, South Stand, Eden
Park, Gate P5, Reimers Ave, Mount Eden, Auckland 1024 on 16 May 2014
commencing at 3.00pm.

Contact

For further information please contact:
Nick Cobham
General Manager (Joint)
Phone: +64 9 303 9656
Email: [email protected]

Simon Woodhams
General Manager (Joint)
Phone: +64 9 303 9652
Email: [email protected]

About PFI

PFI is New Zealand's only listed company specialising in industrial property.
PFI's portfolio of 81 industrial properties in Auckland, Hamilton, Mount
Maunganui, Wellington and Christchurch, is leased to 135 tenants.

www.propertyforindustry.co.nz

Attached

PFI - Appendix 7 - 31 March 2014

(i) Gross sales proceeds.
(ii) PFI defines hedging as any debt that has an interest rate secured for
more than three months.
(iii) As at 5 May 2014.
(iv) PFI also carries forward starting hedging of $65 million at an average
rate of 4.54% for an average duration of five point three years, results in
total hedging of $353 million at an average rate of 4.27% for an average
duration of three point two years.
(v) As at 5 May 2014. Weighted average cost of funds comprises BKBM, hedging,
margins and all syndicated bank loan facility related fees.
End CA:00250081 For:PFI    Type:GENERAL    Time:2014-05-05 08:50:49